The day-to-day of a small and medium-sized business owner can often involve wearing multiple hats to ensure a smooth sailing organisation. Whilst this versatility is an impressive skill, it can be difficult, or even impossible for business owners to be expected to become experts in every facet of the business. Human resource (HR) management is something lots of business owners shy away from. Whether this is because it's out of focus for the company, or not a strength of the business owner, HR management is without a doubt a game-changer for owners juggling a myriad of responsibilities. In this blog we will explore how and why hiring an external HR partner can significantly impact an organisation’s efficiency and success, whilst also lightening the load on the back of business owners.
HR functions are not something easily learnt from tutorials on YouTube. HR functions instead require experts familiar with the intricate nature of industry. This can include hiring, payroll, compliance, and employee relations to name a few. For business owners who are not HR specialists, navigating this landscape can be a huge pain point and drain precious time and resources.
1. Focus on Core Competencies
A business owner’s time is a valuable resource that should be spent focused on the operations, innovation, strategy and overall growth of their business. Hiring an external HR partner can redirect attention away from tasks such as hiring, payroll, compliance etc. and allow more focus on bigger picture tasks within the business.
2. Cost-Efficiency
Maintaining an in-house HR department can be cost-prohibitive for small and medium-sized businesses. External HR partners provide a cost-effective solution, as it eliminates the need for hiring and training additional staff, investing in HR technology, and managing the associated overhead costs.
3. Access to Expertise
External HR partners grant access to a pool of HR professionals with specialised expertise. This also ensures that the business is benefitting from the latest industry knowledge and best practices. When it comes to hiring talent, the diverse talent pool of an external HR partner will also offer an array of highly specialised and experienced talent for a business to hire from.
4. Reduced Compliance Risks
Employment laws and regulations are constantly evolving. Staying abreast of these changes and ensuring compliance can be a daunting task. External HR partnering mitigates compliance risks by leveraging professionals who specialise in navigating the legal landscape, reducing the likelihood of costly legal issues.
5. Scalability and Flexibility
Like any area of business, HR demands fluctuate overtime, particularly during periods of growth or downsizing. HR partners allow for scalability and flexibility, allowing businesses to adapt their HR services based on current needs without the constraints of maintaining a fixed in-house team.
1. Loss of Control
Many business owners are concerned regarding the loss of control when assigning an external HR partner with work. At Paragon we prefer to use a partnership approach. This involves working with the business as opposed to for the business. It allows business owners to retain decision-making authority whilst also benefitting from professional guidance.
2. Confidentiality
A common worry when hiring external partners to take on work for a business is the confidentiality involved in the work. Sourcing a reputable HR partner that prioritise the security and privacy of client information will ensure the confidentiality of all information being exchanged. This is commonly enforced via contracts prior to partnership.
3. Costs
Many business owners opt to delegate HR management to an in-house team member or hire someone in-house. Whilst this may appear more cost-effective in the short term, the reality is that this often results in a higher monetary or time cost. Hiring a new employee takes on average 30 hours. This is too much time for a business owner who must also complete numerous other tasks in the business. Furthermore, if a business opts to hire a HR Manager internally the average salary is $113,000 per year. Compare this to an average HR Partner costing $2,000 per month, and it’s clear the amount of time and money saved.
Overall, external HR partners stand as a transformative strategy for business owners overwhelmed by the multifaceted demands of people management. By partnering with HR experts, owners can redirect their focus to strategic business initiatives, reduce costs, and ensure compliance with evolving employment laws.
The day-to-day of a small and medium-sized business owner can often involve wearing multiple hats to ensure a smooth sailing organisation. Whilst this versatility is an impressive skill, it can be difficult, or even impossible for business owners to be expected to become experts in every facet of the business. Human resource (HR) management is something lots of business owners shy away from. Whether this is because it's out of focus for the company, or not a strength of the business owner, HR management is without a doubt a game-changer for owners juggling a myriad of responsibilities. In this blog we will explore how and why hiring an external HR partner can significantly impact an organisation’s efficiency and success, whilst also lightening the load on the back of business owners.
HR functions are not something easily learnt from tutorials on YouTube. HR functions instead require experts familiar with the intricate nature of industry. This can include hiring, payroll, compliance, and employee relations to name a few. For business owners who are not HR specialists, navigating this landscape can be a huge pain point and drain precious time and resources.
1. Focus on Core Competencies
A business owner’s time is a valuable resource that should be spent focused on the operations, innovation, strategy and overall growth of their business. Hiring an external HR partner can redirect attention away from tasks such as hiring, payroll, compliance etc. and allow more focus on bigger picture tasks within the business.
2. Cost-Efficiency
Maintaining an in-house HR department can be cost-prohibitive for small and medium-sized businesses. External HR partners provide a cost-effective solution, as it eliminates the need for hiring and training additional staff, investing in HR technology, and managing the associated overhead costs.
3. Access to Expertise
External HR partners grant access to a pool of HR professionals with specialised expertise. This also ensures that the business is benefitting from the latest industry knowledge and best practices. When it comes to hiring talent, the diverse talent pool of an external HR partner will also offer an array of highly specialised and experienced talent for a business to hire from.
4. Reduced Compliance Risks
Employment laws and regulations are constantly evolving. Staying abreast of these changes and ensuring compliance can be a daunting task. External HR partnering mitigates compliance risks by leveraging professionals who specialise in navigating the legal landscape, reducing the likelihood of costly legal issues.
5. Scalability and Flexibility
Like any area of business, HR demands fluctuate overtime, particularly during periods of growth or downsizing. HR partners allow for scalability and flexibility, allowing businesses to adapt their HR services based on current needs without the constraints of maintaining a fixed in-house team.
1. Loss of Control
Many business owners are concerned regarding the loss of control when assigning an external HR partner with work. At Paragon we prefer to use a partnership approach. This involves working with the business as opposed to for the business. It allows business owners to retain decision-making authority whilst also benefitting from professional guidance.
2. Confidentiality
A common worry when hiring external partners to take on work for a business is the confidentiality involved in the work. Sourcing a reputable HR partner that prioritise the security and privacy of client information will ensure the confidentiality of all information being exchanged. This is commonly enforced via contracts prior to partnership.
3. Costs
Many business owners opt to delegate HR management to an in-house team member or hire someone in-house. Whilst this may appear more cost-effective in the short term, the reality is that this often results in a higher monetary or time cost. Hiring a new employee takes on average 30 hours. This is too much time for a business owner who must also complete numerous other tasks in the business. Furthermore, if a business opts to hire a HR Manager internally the average salary is $113,000 per year. Compare this to an average HR Partner costing $2,000 per month, and it’s clear the amount of time and money saved.
Overall, external HR partners stand as a transformative strategy for business owners overwhelmed by the multifaceted demands of people management. By partnering with HR experts, owners can redirect their focus to strategic business initiatives, reduce costs, and ensure compliance with evolving employment laws.